MNB FX swap stock unchanged after tender
Image by Jessica Fejos
The stock of "fine-tuning" FX swaps of the National Bank of Hungary (MNB) remained practically unchanged at HUF 1.568 trillion after a tender yesterday, state news agency MTI reported the central bank as saying.
The MNB allocated HUF 24.7 billion (EUR 80 million) in 12-month forint swaps against euros at the tender, practically level with the HUF 24.8 bln of one-month swaps which will expire on Wednesday, the value date of the tender.
The MNB allocated the maximum offered amount of the 12-month swaps after banks bid EUR 715 mln (HUF 221.1 bln).
From Wednesday, the total stock of swaps will thus include HUF 81 bln of one-month, HUF 215 bln of three-month, HUF 73 bln of six-month, and HUF 1.198 bln of 12-month swaps.
The central bank introduced the tenders for the FX swaps in the fall of 2016 as an instrument for managing market liquidity after it put a cap on placements in three-month deposits, its main sterilization instrument.
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